Royal Bank plans to sell Providence-based Citizens by end of 2016

Sunday

Nov 3, 2013 at 10:53 AM

The Royal Bank of Scotland has speeded up the sale of up to 25 percent of RBS Citizens Financial Group to the second half of 2014 and said it plans to sell the entire Providence-based bank by the end of 2016.

By Business staff

The Royal Bank of Scotland has speeded up the sale of up to 25 percent of RBS Citizens Financial Group to the second half of 2014 and said it plans to sell the entire Providence-based bank by the end of 2016.

The Royal Bank, which has owned Citizens since 1988, said it would sell the bank to pull its operations back to the United Kingdom and raise capital to pay back the government the $70 billion used to bail out The Royal five years ago. The United Kingdom owns 81 percent of The Royal and government officials and regulators have been pressuring the bankers to sell off units and restructure to pay the money back.

"We would be better served bringing that capital back to the U.K.", Ross McEwan, RBS chief executive, told analysts during a conference call on Friday.

Citizens had grown to 1,400 branches in ten states with revenue of $3.1 billion in 2012, or about 10 percent of the Royal's total. But McEwan said he wanted to return the taxpayers' bailout money and build The Royal's capital ratios and his plan included the continuing sale of assets.

The sale of up to 25 percent of RBS Citizens would be through a public offering.

McEwan said he is continuing a review of all the operations of The Royal, based in Edinburgh, Scotland, and would present a more detailed strategic plan in February. (Journal Wire Services)